Bittrex, one of the largest crypto exchanges, has decided to delist Bitcoin Gold cryptocurrency. The reason behind the decision is the latter’s refusal to compensate the exchange’s losses following a 51% cyber attack in May, reports RTT.
Bittrex, which has recently added more USD pairings, has punished the Bitcoin Gold Organization for refusing to pay a compensation which the exchange deemed appropriate. At first, the company demanded 12,372 BTG or $256,000. However, the sum has been subsequently changed to 6,000 BTG coins. Neither of the demands was fulfilled.
The exchange believes that the BTG team has been negligent which allowed hackers, who rented computer power, to steal more than 388,000 BTG (around $18 million at the time of the hack) from operators which include HitBTC, Bithumb, Binance, Bitinka, Bitfinex, and Bittrex.
The BTG, however, believes it has done everything within its powers during the 51% attack — a method which fools the exchange into sending more funds than necessary. Thus, they provided access to attacker’s wallet address, gave advice and warnings.
“In light of the potential impact on the BTG Community, our Board carefully considered their demand but concluded we are not empowered to make a disbursement from the Endowment for the purpose of covering a private company’s losses from their own security failures. The Endowment is intended for direct long-term expenses of running the project, as covered in our founding Roadmap/Whitepaper,” the BTG team noted.
They have also noted that they are a non-profit organization and had no revenue streams stating that “all the BTG mining rewards go only to the miners and about half of their endowment fund is time-locked for future use.”
“We offered a BTG loan from the Endowment to help Bittrex address short-term liquidity problems, but they declined and insisted on a payment,” the company notes. Besides, they reminded Bittrex that as a private company they are “ultimately responsible for their own security.” The team behind the altcoin also claims that now that they have had Network Upgrade via hard fork, it will be impossible to carry out another attack of a similar kind.
While Bitcoin Gold is back on the market, its value is not too impressive. If at the end of 2017 it traded at $500, now it is worth $21,73. Besides, back in November, when it was the fifth largest cryptocurrency, it suffered an attack worth $3.3 million: The users were tricked into downloading a fake wallet.
The cryptocurrency will be officially delisted on the 14th September.